Abstract

The effects of union bargaining power and trade liberalization on industry selection are analysed within a two-country heterogeneous-firm model with firm-specific unions and inter-country asymmetries in size and union power. Union bargaining power is shown to have more nuanced effects on efficiency and welfare than what typically suggested by conventional wisdom. While the higher wages resulting from an unfavourable union power differential harm firms' competitiveness, by reinforcing standard market access mechanisms, they give rise to aggregate demand effects that can act as a catalyst for industry and result in a pro-variety effect.

Autore Pugliese

• Nocco Antonella

Tutti gli autori

• C. Montagna , A. Nocco

Titolo volume/Rivista

METROECONOMICA

Anno di pubblicazione

2015

ISSN

0026-1386

ISBN

Non Disponibile

Numero di citazioni Wos

1

Ultimo Aggiornamento Citazioni

27/04/2018

Numero di citazioni Scopus

7

Ultimo Aggiornamento Citazioni

26/04/2018

Settori ERC

Non Disponibile

Codici ASJC

Non Disponibile